Clearwire Slashes Staff, Halts New Stores, Delays Smartphones
Nov 4, 2010, 3:29 PM by Eric M. Zeman
updated Nov 4, 2010, 3:37 PM
Clearwire today announced that it has taken a number of cost-cutting measures, including a head count reduction, in an attempt to stay afloat while it seeks additional capital. The company said in a statement, "While the Company is cautiously optimistic it will resolve its short-term funding needs in the near future, there can be no assurances. Thus, it is implementing a series of significant cash conservation measures to reduce costs, including: a substantial reduction in sales and marketing spending, a suspension of additional retail channel market launches of the Clear-branded operations in select markets including Denver and Miami, delays in the introduction of Clear-branded smartphones, a substantial reduction in the contractor workforce, a 15% reduction in the number of employees, and the discontinuation of development activities for sites not required for its current build plan." Clearwire is actively seeking funding to continue operations into 2011. If it doesn't, the company may run out of funds by the end of the year. Clearwire CEO Bill Morrow said earlier this year that the company is seeking new partners, and it has spoken to T-Mobile. No deals have been struck.
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